Fatshimetrie, an independent organization dedicated to analyzing economic and social issues, recently raised concerns over proposals to increase the minimum wage in Nigeria. Chukwuma Soludo, former governor of the Central Bank of Nigeria, warned of the potentially harmful consequences of the increases while speaking at The Platform Nigeria programme, organized by the Lagos-based church, Covenant Nation, to mark the Day of Democracy of 2024 on Wednesday, June 12.
Soludo stressed that not all state governments and the organized private sector could afford to pay the proposed amount of ₦62,000 by the federal government, much less the ₦250,000 demanded by Organized Labor. He expressed fears over Tinubu’s decision to approve an unsustainable minimum wage for workers in the country, warning of the risk of job losses and a deterioration of the economic situation.
It would be recalled that Soludo and his 35 colleagues at the Nigeria Governors Forum (FGN) have previously declared that both the Federal Government’s offer and workers’ demands for minimum wage are unsustainable. Despite this, the President assured Organized Labor during his Democracy Day speech that an executive bill on the new minimum wage for workers would soon be sent to the National Assembly for adoption.
However, Soludo warned of the unintended consequences that this measure could bring, pointing out that the private sector employs a large part of the country’s total workforce and not all of them will be able to pay what the federal government has propose.
“The question of the minimum wage, everyone is right. The worker is right to ask: ‘What will I get?’ No one asks what a worker does. We are not asking this question yet. All we say is, ‘How much does he need?’ He (the worker) is right, and for me, even if we pay ₦1 million, it’s not enough. But on the other hand, we have to come back to reality; talking about these SMEs, schools, churches, and so on. You will have to pay your own driver. We are all concerned. Whatever they decide, we will get through it, but maybe after a year we will have to come together to discuss the consequences,” Soludo emphasized.
Fatshimetrie’s concerns thus raise essential questions about the need to find a balance between workers’ legitimate aspirations for decent wages and employers’ financial capabilities, particularly in a context where many businesses are struggling to stay afloat.. The minimum wage issue cannot be addressed in isolation, without taking into account economic realities and the long-term implications for employment and growth.
Ultimately, a balanced and concerted approach between different stakeholders is necessary to find sustainable and inclusive solutions that will benefit society as a whole. Open dialogue and consideration of all perspectives are essential to ensure fair and equitable wage policies, while supporting the economic viability of businesses and job creation.